Action plan for Europe’s grids launched

The widely awaited EU Action Plan for Grids is aimed at enabling the region’s grids to operate more efficiently and be rolled out further and faster.

With the focus shifting to the grids as their development is not keeping pace with that of renewable generation – and in some locations forming a bottleneck to new renewable connections – the EU’s plan sets out seven key action areas and 14 tailored actions to advance their development.

Entitled Grids, the missing link, the plan points to an expected around 60% increase in electricity consumption in the EU between now and 2030.

The system will be more decentralised and more digitalised and flexible, with millions of rooftop solar panels, heat pumps and electric vehicles, local energy communities sharing their resources, more offshore renewables coming online and growing hydrogen production needs.

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With 40% of the region’s distribution grids more than 40 years old and cross-border transmission capacity due to double by 2030, an estimated €584 billion ($641 billion) in investments are necessary.

The seven action areas are as follows.

1. To accelerate the implementation of the ‘Projects of Common Interest’, of which more than 100 such cross-border interconnection projects have been identified so far over the past decade, and to develop new projects through political steering, reinforced monitoring and more proposals.
2. To improve the long-term planning of grids to accommodate more renewables and electrified demand, including hydrogen, in the energy system, with actions include integrating the onshore and offshore network planning by ENTSO-E and a mapping of the distribution development plans by the DSO Entity.
3. To introduce regulatory incentives through guidance on anticipatory investments in grid projects and on cross-border cost sharing for offshore projects.
4. To incentivise better usage of the grids with enhanced transparency on grid hosting capacity and improved network tariffs for smarter grids, network efficiency and innovative technologies and solutions.
5. To improve access to finance for grid projects by identifying tailored financing models and increasing visibility on opportunities for EU funding programmes for smart grids and modernisation of the distribution grids.
6. To stimulate faster permitting for grids deployment by providing technical support for authorities and guidance on better engaging stakeholders and communities.
7. To improve and secure grid supply chains, including by harmonising industry manufacturing requirements for generation and demand connections and improving visibility on grid project pipelines.

Commenting on the action plan, Kadri Simson, Commissioner for Energy, said Europe will only ensure its energy security and deliver on its climate ambitions if the power infrastructure expands and evolves to be fit for a decarbonised energy system.

“Grids need to be an enabler, not a bottleneck in the clean energy transition. [The] action plan sets the scene.”

Industry comment on grid action plan

The grid action plan has been welcomed widely across the energy sector.

Damian Cortinas, Chair of the Board of ENTSO-E, said: “The action plan clearly brings into focus the critical role of electricity grids to achieve the European energy transition.”

He also called for a strong governance to track the delivery of the targets, ensuring milestones are achieved and challenges are addressed in a timely manner.

Christian Buchel, president of E.DSO, stated: “The grid action plan is a good step ahead on the recognition of the grid.”

However, he commented that it overlooks the investments and industrial vision of DSOs and that the Commission should trust the innovation of the DSO industry and refrain from over-regulation.

WindEurope CEO Giles Dickson described it as “a good plan that understands there’s no energy transition without massive investment in power grids”.

But he cautioned that urgent action is needed to tackle the huge queues of wind and solar that have applied for a grid connection, filtering out the speculative projects and prioritising the good ones.

Naomi Chevillard, Head of Regulatory Affairs at SolarPower Europe, said the plan is “an excellent and necessary initiative from the European Commission”.

But guidance must be put into action to accelerate grid connection, she added, also expressing concern with the absence of concrete, regulatory provisions to support the easy win of growth and integration of flexibility at all voltage levels.